In answering which of the following questions would you find it necessary to calculate a present value?
a. Should Jane put $1,000 today into a 5-year certificate of deposit that pays 4 percent annual interest?
b. Should ABC Corporation buy a factory today for $2 million, knowing that the factory will yield the corporation $3 million after 5 years?
c. If Jill puts $5,000 today into a bank account that pays 3 percent interest, then how much will she have in the account after 2 years?
d. You would find it necessary to calculate a present value in order to answer all of these questions.
b
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The sum of the marginal private benefit and the marginal external benefit derived from eco-tourism in British Columbia is called the
A) total private benefit. B) net gain. C) total external benefit. D) marginal social benefit. E) total Coase benefit.
In oral auctions, the price that the winner pays depends on
a. The winner's willingness to pay b. The highest willingness to pay among the losers c. The lowest willingness to pay among the losers d. None of the above
If workers expect inflation, and negotiate wage increases that exactly match price increases, the result is a
a. horizontal aggregate supply curve at the level of potential GDP. b. vertical aggregate supply curve at the level of potential GDP. c. horizontal aggregate demand curve at the level of potential GDP. d. vertical aggregate demand curve at the level of potential GDP.
Suppose that an industrial accident at a factory destroys a significant number of high-speed blenders that bartenders use to mix frozen drinks. What will happen in the labor market for bartenders?
a. Both wages and employment will increase. b. Both wages and employment will decrease. c. Wages will increase, and employment will decrease. d. Wages will decrease, and employment will increase.